Not for Profit

The Financial Accounting Standards Board (FASB) became aware that the definition of collections in the Master Glossary of the FASB Accounting Standards Codification® (ASC) did not agree with the definition used in the American Alliance of Museums’ Code of Ethics for Museums (the Code). The Code had been revised after the issuance of a prior FASB statement, which served as the basis for the definition of collections in the ASC. Accounting Standards Update (ASU) No. 2019-03, Not-for-Profit Entities (Topic 958): Updating the Definition of Collections, was issued to realign the definition used in the Master Glossary of the ASC with the definition used in the Code.

When the Tax Cuts and Jobs Act (TCJA) made qualified transportation fringe benefits (QTFs) nondeductible, it changed how parking expenses are treated. Recently, the IRS released interim guidance (Notice 2018-99) on how not-for-profit organizations can determine the amount of these expenses that must be treated as an increase in unrelated business taxable income (UBTI) as of Jan. 1, 2018.

The Financial Accounting Standards Board (FASB) recently issued Accounting Standards Update (ASU) No. 2018-08, Not-for-Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made (ASU 2018-08) that clarifies and improves the scope and accounting guidance around contributions of cash and other assets received and made by not-for-profit organizations (NFPs) and business entities.
While ASU 2018-08 also applies to business entities that make or receive contributions, it will primarily impact NFPs.

When designing its tax reform bill, Congress did not overlook tax-exempt organizations. The Tax Cuts and Jobs Act of 2017 (TCJA) includes provisions relating to unrelated business taxable income, executive compensation, and investment income. Beyond the impact the new law has on tax-exempt organizations, individual donors' charitable giving will also be affected.

We could not say goodbye to 2017 without revisiting the year’s most popular content. We believe these posts illustrate the depth and varied experience of our firm as well as our commitment to helping our clients further their growth and success.